Brookfield Property Partners (BPY) propped up its first quarter earnings by selling its stake in retailer Forever 21 for $63 million.
The publicly traded REIT – which parent Brookfield Asset Management plans to take private later this year – reported that its first quarter funds from operations fell nearly 60 percent year over year to $125 million.
Overall, the company’s net income was $731 million, up from its $373 million loss a year ago.
“While we continue to experience challenges in certain of our operations and markets due to the ongoing consequences of the pandemic and global economic slowdown, we remain encouraged by a recovery in activity in select sectors within our business,” said Brian Kingston, CEO of Brookfield Property Partners .
BPY partnered with Simon Property Group and Authentic Brands Group by buy Forever 21 out of bankruptcy last spring for $81 million. Its exit from the venture came as its core retail business dropped from $195 million during 1Q 2020 to $108 million this year as Brookfield handed back to keys to three malls in Kentucky, California and Louisiana amid a drag in the sector that included “occupancy changes, co-tenancy claims, reduction in rents, impact of abatements and reduced overage and temporary rents,” according to its Q1 2021 report.